Daily Report 22 November

SA Company News:

The JSE All Share Index closed 0.7% down at 70 376 on Friday. Pepkor, whose brands include Ackermans, Pep, Tekkie Town and The Building Company, reported that its earnings more than doubled to R5 billion for the year (compared to 2020), while its revenue increased by 9.2% to R77 billion. Its operating profit rose by 40% to R9 billion. Retailers have been hit hard by initial COVID-19 lockdowns in April and May 2020 when they were forced to close shops, and the subsequent waves of COVID-19 infections. However, Pepkor benefited from its focus on budget-conscious consumers. Naspers Ltd interim results for the six months ended 30 September 2021, stated group trading profit grew 8% to US$2.9bn and headline earnings per share were 416 US cents. The Ecommerce segment revenue grew 60% to US$4.6bn. Tencent also delivered strong results and remains positioned for continued growth. Prosus N.V.interim results for the six months ended 30 September 2021 stated that the group revenue grew 31% to US$16.6bn and group trading profit grew 8% to US$2.9bn as its portfolio of investments in educational technology and food delivery companies grew revenues rapidly.

SA Economy:

Ratings agency S&P did not release a review of South Africa’s credit rating citing unchanged factors since its last review earlier this year. The move was in line with most analyst expectations and means South Africa remains on its BB-rating with a stable outlook. The SA Commercial, Catering and Allied Workers Union is calling for a consumer boycott of Massmart stores across the country from today with the aim of getting management to table a revised wage offer 

Global Economy:

Japan’s Prime minister, Fumio Kishida, outlined on Friday a record $490 billion stimulus package, including cash handouts and aid to ailing businesses, defying a global trend towards scaling back crisis-mode stimulus measures. In Asia, Covid-related factory closures, energy shortages and port-capacity limits have eased in recent weeks. News of lockdowns in Europe due to another wave of Covid-19 infections, weighed on global sentiment. Japan’s government spokesman said that the government is considering releasing oil from its reserves to help curb surging energy prices.

Global Company News:

The FTSE 100 closed 0.6% lower at 7 212. Deutsche Bank names Alexander Wynaendts as next Chairman, he will succeed Paul Achleitner when he retires in May 2022 after overseeing the bank for a decade. The Shanghai Composite Index rose 0.4% to trade at 3 570 as China kept its benchmark lending rates for corporate and household loans unchanged at 3.85% Wall Street followed Europe down as the Dow Jones closed 268 points lower at 35 601. Trade is likely to be thin this week with Thanksgiving holiday on Thursday in the United States and a shortened trading day on Friday.

Commodities:

Gold lost 0.15% to $1 844/oz, while platinum gained 0.52% to $1 055/oz. Brent crude fell to $78.67 a barrel.

Cryptocurrencies.

Bitcoin is down 4.19% to $57583.30 Longest losing streak since July. Ethereum is down 5.43% to $4022.41 Down eight of the past nine days.

Currencies:

The local currency firmed as investors digested the SA Reserve Bank’s interest rates hike. The rand traded at R15.58 against the US Dollar, R21.03 against British Pound and R17.69 against the Euro. The Euro has recovered slightly to trade at $1.127.

Brent Oil Futures
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Gold Futures
Top 40 Futures

 

Market Indicators

Commodities $ Cross Currencies ($) Major Indices
Gold 1846,26 -0,70% USD/ZAR 15,75 Top40 63871,00 -0,65%
Platinum 1035,30 -1,83% GBP/ZAR 21,18 Dow 30 35602,00 -0,76%
Brent 78,46 -3,28% EUR/ZAR 17,17 S&P 500 4698,00 -0,14%
Copper 4,37 -0,39% EUR/USD 1,13 FTSE 7223,57 -0,45%
Palladium 2059,00 -3,76% USD/JPY 114,15 DAX 16160,00 -0,38%
Iron Ore 86,50 1,73% BITCOIN 57892,90 Shanghai 3580,45 0,62%
Source:  Moneyweb & Investing.com